The major purpose of this paper is to measure the magnitude and significance of the impact of housing density on housing price. In order to pursue this objective, we employ hedonic model using Seoul apartment data.
Through regression analysis, we fou...
The major purpose of this paper is to measure the magnitude and significance of the impact of housing density on housing price. In order to pursue this objective, we employ hedonic model using Seoul apartment data.
Through regression analysis, we found following facts: 1)Housing density represented by floor area ratio has a significant impact on reduction in housing price. 2)This trend becomes stronger year after year. 3)However, during those years of 1990 and 1992, this trend is less persuasive. 4)The causes of this weak relationship in these years might be downturn of overall housing market and the changes in regulations on housing density, which in turn, lower the level of expectation in capital gains on housing.